Science Applications International Corporation ( SAIC Quick Quote SAIC - Free Report) on Thursday revealed that the Space Development Agency (“SDA”) has selected it for developing a software application factory for the agency’s constellation of low-earth orbit satellites under a contract worth $64 million.
To avoid confusion, SAIC will not build an actual factory but a cloud-based development process, the Battle Management Command, Control and Communications (“BMC3”) Application Factory. Through BMC3’s DevSecOps process, SDA will be able to deliver software to its constellation in the low-earth orbit, the Proliferated Warfighter Space Architecture (“PWSA”).
Under the PWSA program, SDA is developing a layered network of military satellites, which includes missile warning, tracking sensors and data transfer. Through SAIC’s BMC3 DevSecOps process, SDA will be able to design, test and upgrade applications using a repeatable path.
SAIC is benefiting from the continued flow of high-value contracts. A record level of awards reflects its disciplined business-development actions, consistent operational excellence and high customer satisfaction. As of May 5, 2023, the company’s total contract backlog was $23.8 billion.
SAIC is currently focusing on the federal government marketplace and capturing more market share. It intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening existing customer relationships while building newer ones. Increased federal spending is anticipated to accelerate the pace of contract awards, which will be beneficial for SAIC’s top line.
Last month, SAIC grabbed a contract worth $249 million from the U.S. Navy to continue supporting the Naval Air Warfare Center Weapons Division’s combat instrumentation platforms used for training and test evaluation ranges. In April 2023, the company was awarded an $889 million contract by the Federal Systems Integration and Management Center in support of the Defense Counterintelligence and Security Agency to develop and implement One IT, which provides IT modernization to the agency’s systems.
Zacks Rank & Stocks to Consider
SAIC currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 5.3% year to date (YTD).
Some better-ranked stocks from the broader technology sector are
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